You asked if any state has adopted, or is considering, legislation establishing a lemon law for computers.

SUMMARY

We could not find any law establishing a lemon law for computers. Lemon laws give consumers the right to a repair, refund or replacement if product defects are detected during a specified period after purchase and the manufacturer cannot or does not repair them within a certain time.

Pennsylvania and Illinois have nearly identical bills establishing computer lemon laws. The bills (1) require manufacturers to repair computers within five days, (2) inform purchasers of their lemon law rights at the time of purchase, and (3) establish a consumer's right to repair, replacement, or refund and the right to sue for damages.

Both bills are pending in their respective legislatures. In both states, they have been re-introduced after they failed to pass in earlier sessions. We have attached copies of them.

PENNSYLVANIA AND ILLINOIS LEMON LAW PROPOSALS

The bills apply to individuals and businesses with fewer than 30 computer workstations that leased, bought, or received a computer as a gift. The bills define "computers" to include not only central processing units and monitors, but printers, connective devices, modems, scanners and other devices, as well as any programming for a computer, whether pre-installed or purchased separately (Illinois HB 1046 and Pennsylvania HB 1052).

Consumer Rights

The bills provide that anyone who purchases a computer gets a statement of his lemon law rights at the time of sale. They require computer manufacturers to (1) obtain a signed statement from each purchaser indicating that he had seen and understood his rights, and to (2) disclose to consumers at the time of sale the names of all software likely to cause operating problems. Manufacturers have the burden of proving they have made such disclosures in any claim brought under the bill.

Right to Repair

The bills entitle purchasers to free repairs for any nonconformity occurring within two years after the manufacturer obtained the consumer's signed acknowledgement of his rights. A "nonconformity" is defined as any defect, condition, or malfunction that impairs the use of a computer device or causes it to operate in an unintended way.

The bills require manufacturers to repair and return any computer to the buyer within five business days. Free repairs must be made on-site if provided for in the warranty. Otherwise, the manufacturer must arrange and pay for shipping. If the computer had been shipped, a manufacturer has up to three additional days to return it. Repairs are guaranteed for two years.

If the first repair was ineffective, the bills give manufacturers a second chance to repair on-site. The repair must be completed within three business days.

Right to Refund or Replacement

If the second repair is either ineffective or not timely, the bills give a purchaser the right to either a full refund or a new computer of equal or greater value.

If there is more than one problem with the original computer, a purchaser is entitled to a refund or a new computer after only one repair attempt.

Return of the Computer

If a manufacturer replaces a computer or refunds its purchase price, the bills authorize them to ask the consumer to return it at cost. No computer returned to the manufacturer may be resold in the respective states.

Civil Actions

In addition to a refund or replacement, the bills allow a purchaser to sue for damages equal to three times the purchase price. A purchaser may seek such damages if a manufacturer fails to honor warranty terms, resells a returned lemon, or fails to keep records of all consumer contacts and provide copies on request.

Under both bills, a prevailing purchaser may receive up to $ 6,000 in damages from the trial court. In Pennsylvania, other courts may award lesser amounts in damages.

The bills require a manufacturer to produce a corporate witness at every court proceeding and allow manufacturers to assert relevant defenses. A nonconformity caused by software is not allowed as a defense if the software was pre-installed by the manufacturer except if (1) the manufacturer produces an expert who states the cause of the problem and a way to fix it, and (2) the manufacturer had strictly complied with the bill's software notice provisions.

Purchasers are not required to produce experts. If a purchaser prevails, the manufacturer must pay reasonable attorney's fees and costs, as well as any expert expenses.

DD: eh